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TOP STORY
BRIEFING: Orsted drops e-methanol plant for shipping, following Shell and BP retreat from biofuels
Danish energy giant Orsted has scrapped a proposed e-methanol plant meant to supply green fuel for container ships amid a lack of demand, it announced Wednesday, in the latest sign that European energy majors are retreating from green fuel projects.
EMEA
Large German firms reduce value chain emissions 4% in 2023 -report
The 40 major companies listed on Germany’s DAX stock market index collectively reduced their total value chain greenhouse gas emissions by 4% last year, compared to the previous year, according to analysis from a large consultancy.
Euro Markets: EUAs float higher as selling pressure dwindles, UKAs rise for first week since June
EUAs posted their third weekly gain in the last month, as modest buying activity was enough to counter active selling pressure, while trading volume shrank as participants headed into the peak summer weekend and UKAs snapped a run of six weekly losses.
AMERICAS
California Senator proposes to delay climate disclosure law rollout
The bill sponsor of California’s emissions disclosure law proposed a six-month implementation delay to the regulation, among other changes this week.
US oil majors defend objections to Pennsylvania county climate lawsuit
A group of US oil companies with global operations jointly filed a brief last week asking a court to dismiss a Pennsylvania county’s claims that their industry had exacerbated climate change.
Speculators build CCA length, compliance shores up RGGI holdings
Financial entities further built their net long V25 California Carbon Allowance (CCAs) holdings, while compliance demand for RGGI Allowance (RGA) holdings extended for another week as prices surged to new record highs, according to weekly data from the US Commodity Futures Trading Commission (CFTC).
Mexico one of least exposed LATAM countries to EU CBAM, says expert
Mexico stands to be less exposed than other Latin American economies to the EU’s carbon border adjustment mechanism (CBAM), Carbon Pulse heard this week at the Mexico Carbon Forum in Guanajuato, although the country could be caught in the crossfire of potential obstructive trade measures by the US.
ASIA PACIFIC
CN Markets: CEA price barely moves, weekly trading volume steady
CO2 allowance prices in China’s carbon market hovered around the 91 yuan ($12.70) level over the past week, while the weekly trading volume has remained steady.
Indonesian president-to-be reaffirms carbon administration
Indonesia’s incoming president Prabowo Subianto’s office has reconfirmed a plan for a Climate Change Control and Carbon Administration which will use blockchain to manage its carbon markets in addition to pursuing a net zero target set by the previous administration.
South Korean companies set out to decarbonise asphalt production
South Korean companies are developing methods to make the asphalt paving process more environmentally friendly, which can help reduce emissions in the transportation sector.
INTERVIEW: NZ market heading in the right direction, returning veteran says
While he took the time to disconnect from New Zealand’s carbon trading scheme during a recent gardening leave, a prominent figure in the market on Friday told Carbon Pulse he is optimistic about its fundamentals since returning.
Japanese carbon standard sees first batch of certified emissions reductions
A cross-sector alliance that aims to revitalise Japan’s carbon credit market has seen the first batch of certified carbon credits under its newly developed carbon standard, it announced Friday.
Australia Market Roundup: Govt seeks feedback on FullCAM model, guidelines
The Australian federal government on Friday released a consultation on its latest version of the Full Carbon Accounting Model (FullCAM) and associated guidelines.
GenZero signs MoU with energy firm, asset manager to retire coal-fired power plant in Philippines using ‘transition credits’
GenZero, a subsidiary of Singaporean government-owned investment firm Temasek, has signed a Memorandum of Understanding (MoU) with a Philippines-headquartered energy company and a global asset manager to explore the use of ‘transition credits’, starting with the retirement of a coal-fired power plant in the Philippines, it announced Friday.
CBAM to hit Vietnam’s steel exports, researchers find
Southeast Asia’s top steelmaker is likely to be hit by Europe’s carbon border taxes but not necessarily enough to force it to make a low-carbon change, a paper said this week.
VOLUNTARY
Voluntary carbon standard seeks feedback on peatland restoration methodology
A voluntary carbon standard body is seeking feedback on a modular peatland restoration methodology that will in the first module focus on crediting the rewetting of drained peatlands on agricultural land in temperate climates.
SHIPPING
Maersk joins industry study to assess potential for nuclear-powered container shipping in Europe
Danish shipping company Maersk will work together with two parter companies to assess the potential for nuclear-powered container ships in Europe, they announced this week.
BIODIVERSITY (FREE TO READ)
Australia seeks advice on sustainable ocean plan, sees market opportunities
The Australian government on Friday distributed a draft sustainable ocean plan for public comment, offering little in terms of specifics at this early stage but saying the plan would bring a long list of opportunities, including for carbon and biodiversity markets.
Almost 25% of European lands can be rewilded, report says
Nearly 25% of the European landscape has the potential to be rewilded, with over two-thirds of the territories lying in countries with cooler climates such as Scandinavia, Scotland, and the Baltic states, researchers have found.
UN talks move slowly towards setting up a global fund for sharing benefits derived from genetic resources
After the latest round of talks, the UN negotiation group in charge of defining a mechanism to share benefits derived from the digital sequence information on genetic resources (DSI) on Friday said parties are getting closer to an agreement, which is set to include the establishment of a global fund.
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CONFERENCES
Carbon Forward Expo – October 8-10, London and Online: Our flagship conference returns to the stunning De Vere Grand Connaught Rooms in Covent Garden. As the agenda comes together for our ninth annual event, we want to make sure you don’t miss out on our 10% discount offer, which is available throughout August. We’re also offering free passes for offset buyers. Get in touch to find out if you’re eligible and how to apply. Register now!
Chile Carbon Forum – October 8-10, Santiago: The forum will bring together experts, business leaders, and government officials to discuss challenges and opportunities within the carbon market. It will cover topics such as carbon taxes, offsetting mechanisms, climate finance, carbon market regulations, international cooperation, nature-based solutions, and innovative emission reduction strategies. The agenda includes panel discussions, workshops, and keynote speeches that emphasize the importance of these topics in promoting a low-carbon economy and combating climate change. This forum is crucial for understanding and advancing collaborative approaches to sustainability. For more information, visit Chile Carbon Forum.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Protecting interests – Texas added Britain’s NatWest to a list of firms that “boycott” energy companies, Reuters reported Wednesday, which could potentially restrict the bank’s business with state public agencies. A spokesperson for the Texas Comptroller cited NatWest’s policy stating that following 2025, it will not refinance or extend existing reserve based lending specifically for the purpose of financing oil and gas exploration, extraction, and production. The Comptroller, led by Glen Hegar (R), is responsible for determining which firms or funds discriminate against energy companies, and listed companies ace limits on business they can do with state entities such as pension funds, under a new Texas law.
EMEA
Nuclear delay – A final investment decision on the UK’s next large-scale nuclear power plant, Sizewell C, risks getting pushed into next year as negotiations with private investors take longer than expected following the country’s general election last month, Bloomberg reports. Now, it’s increasingly likely that the plant may not get a go-ahead until early next year, say people close to the matter. Currently the only station under construction in the UK is Hinkley Point C, which has been repeatedly delayed and is expected to cost as much as £47.9 bln. The government has reiterated it’s still committed to Sizewell C and is aiming for financial close by year end. In addition to equity, banks will also lend as much as £12.5 bln to help finance the plant.
Royal SAF Force – The UK’s Royal Air Force (RAF) has started using sustainable aviation fuel (SAF) on routine operations, in a move that it says will both cut carbon emissions and bolster energy security. The RAF received 4 mln litres of blended SAF through a contract with World Fuel Services earlier this year and expects another 5 mln litres in the coming months. As a result, aircraft including Typhoon and Poseidon submarine hunters are now using a blend of conventional fuels and SAF as they defend the UK and its allies, it said. The UK’s Ministry of Defence updated its aviation fuel standards in 2020 to allow the share of sustainable sources in the fuel mix in defence aircraft to go up to half. Using SAF can cut aircraft carbon emissions by up to 70%, making it an important part of the RAF’s goal to reach net zero emissions by 2040, it said.
ASIA PACIFIC
GGGI and Laos – Laos is progressing its Article 6 work with its national bank and the Global Green Growth Institute (GGGI) partnering via a carbon market seminar. Laos is one of 21 Art.6 partners with Singapore. GGGI said it was delivered under the programme for Open and Sustainable Carbon Markets and funded by Australia’s Department of Foreign Affairs and Trade (DFAT). Employees from the Bank of Lao PDR and local commercial banks joined, and government officials. Two weeks ago the nation signed an MoU with the UK for carbon market collaboration.
High status – New Delhi’s Indira Gandhi International Airport has become first airport in the country to receive a net zero emissions status, as it achieved zero emissions through various initiatives, much ahead of its 2030 target. Delhi airport has received the status under the Airport Council International’s (ACI) Airport Carbon Accreditation (ACA) programme, which provides a framework for active carbon management at airports while encouraging carbon reduction practices. There are five levels of accreditation, with level 5 being the highest. By achieving level 5 certification, Delhi airport has demonstrated significant progress in reducing its Scope 1 and 2 CO2 emissions by 90% and the remaining residual emissions were addressed through approved offset removals, fulfilling the stringent requirements of the ACA programme, the Business Standard reported.
Coal to green H2 – Government-owned NLC India Limited is planning to establish a pilot project in Neyveli, Tamil Nadu for producing green hydrogen in line with the country’s National Green Hydrogen Mission, the Hindu reported. The pilot project will involve utilising 4 MW of solar energy to power the electrolyser. The company is also targeting capacity addition targets of 20 GW in power generation and attainment of 100 million tonnes per annum in mining capacity by 2030. The long-term plans of the coal producer include generating power through coal-based power plants in Odisha and renewable energy projects in Rajasthan and Gujarat.
Cautious investment – Thai energy company Banpu Public Company Limited is planning to invest in technology to reduce CO2 emissions, the company’s CEO said, as reported by the Nation. There will be additional investment in carbon capture, utilisation, and sequestration (CCUS) technology, battery farms, and battery manufacturing. However, given the current state of the global economy, the company will proceed cautiously, awaiting the right time and price before making a move, CEO Sinon Vongkusolkit said. For 2024, the majority of $350 mln in total investment funds will be invested in decarbonisation, he added.
AMERICAS
Here to stay – The US Environmental Protection Agency’s (EPA) grant programme under the Inflation Reduction Act (IRA) will effectively become irrevocable Friday, reported E&E News. The agency will mark the climate law’s second anniversary by officially obligating $27 bln in awards under the Greenhouse Gas Reduction Fund (GGRF). It is EPA’s largest IRA programme, and aims to support GHG reduction projects while bolstering lower-income communities and cultivating a new ecosystem of green lenders. The agency in April chose 68 awardees — mostly nonprofits and states — to implement three distinct GGRF programmes. The move ensures the federal government can’t renege on those contracts, even if former President Donald Trump wins the upcoming election in November.
Addressing methane leaks – Plants & Goodwin (P&G), a subsidiary of US-based methane offset developer Zefiro, has acquired a minority stake in Winterhawk – a Calgary-based manufacturer of tools and technologies used to seal oil and gas wells. Through Winterhawk’s casing expansion technology, P&G will be able to eliminate emissions with every deployment, Zefiro’s CEO Talal Deb said. The two companies have also entered into an exclusive patent license agreement for Winterhawk’s US patents for an undisclosed amount, according to a press release, which will make P&G the only firm to be able to use, deploy, distribute, sell or otherwise dispose, and sublicense Winterhawk Products in the US.
Project delay – Woods Hole Oceanographic Institute (WHOI) has announced the postponement of its LOC-NESS Project’s trial to 2025, which is focused on advancing what they claimed to be a potential climate solution called ocean alkalinity enhancement (OAE). The next phase will involve a controlled and monitored OAE field trial in federal waters off the coast of Massachusetts. The US Environmental Protection Agency (EPA) has faced a flood of public and academic opposition to the proposed ocean alkalinity research project south of Martha’s Vineyard, while even supporters acknowledged the risks and unintended consequences involved given it was impossible to fully replicate the natural environment in a lab. WHOI said in a press statement that the experiment was delayed in response to changing ship availability and to resulting changes in ocean conditions later in the year. The LOC-NESS project aims to provide an objective assessment of the effectiveness and environmental impact of OAE, WHOI said, which they claim is a potential climate solution that scientists believe could remove large amounts of excess carbon dioxide from the atmosphere.
Midstream checks – Colorado’s Air Quality Control Commission (AQCC) set on Friday a rulemaking hearing for Dec. 18, 2024 on a proposal to reduce GHG emissions from midstream oil and gas operations by 2030, according to a press release. Midstream operations include gathering, compressing, and processing natural gas, with facilities in 20 counties statewide, the majority located in Weld, Garfield, and Rio Blanco counties. The proposed rules were the result of a two-and-a-half-year process with input from the state’s Midstream Steering Committee, diverse stakeholders, and residents. The proposed rule would also address targeted revisions to Colorado’s state implementation plan for ozone pollution, prioritise emissions reductions in disproportionately impacted communities, and help the state progress toward its goal of achieving net-zero GHGs by 2050.
CA CDR – California CO2 removal (CDR) bill SB-308 is held in the Assembly Appropriations Committee and under submission as of Thursday, inching closer to vote by the Assembly floor. The bill requires California’s ARB to adopt specified standards and targets for CDR to achieve the state’s GHG goals, but leaves much uncertain, such as who would be responsible for payment of the CDR required to meet California’s net zero by 2045 mandate. Stakeholders noted that the bill faces a long road to resolving outstanding question marks as it weaves through the legislative process.
LCFS – Following California regulator ARB’s release of Low Carbon Fuel Standard (LCFS) amendments on Tuesday, the agency released its recirculated draft Environmental Impact Analysis (EIA) on Friday. The draft EIA is available for public comment for a 45-day period, closing on Sep. 30. The final EIA, alongside comments submitted in response to the draft EIA and the recirculated draft EIA will be considered by the board on Nov. 8.
Biofuels – US Department of Agriculture (USDA) Secretary Tom Vilsack told biofuel supporters that the agency aims to make biofuels a key part of a clean fuels tax credit taking effect next year, E&E News reported Friday. Vilsack told the American Coalition for Ethanol on Thursday that the USDA recognised the significance of the next few months given that the 45Z Clean Fuel Production Credit will be offered as of Jan. 1, 2025.
Tax credit disparity – US households with income of $200,000 or more received $2.2 bln in tax credits for making their residences more energy efficient, while households with income below $25,000 only received $32 mln in such credits. That’s according to an analysis released on Friday by POLITICO’s E&E News of President Joe Biden’s tax credit programme to spur homeowners to buy solar panels, insulation materials, and other items that can reduce energy bills and home emissions. The wealth disparity alarms some economists and advocates, raising concerns that the credits are giving taxpayer money to those who don’t need financial help or incentives to buy equipment that saves them substantial money on energy bills. The residential energy credits in 2023 cut income taxes by a total of $8.4 bln, with an average credit worth $1,100. However, credits were much larger for people with higher incomes. Notably, people with income below $100,000 accounted for 76% of all federal taxpayers in 2023, but received only 34% of the energy tax credits — $2.9 bln in total. Meanwhile, people with income of $100,000 or more accounted for 24% of federal taxpayers last year, but received 66% of the tax credits: $5.5 bln.
VOLUNTARY
Event postponed – The Eastern Africa Regional Carbon Markets Dialogue has been postponed, according to a LinkedIn announcement. The public-private engagement on the role of Article 6 and the voluntary carbon market that was scheduled for Sep. 3-5 in Dar es Salaam, Tanzania will not take place as planned, following a request from the country’s government to re-schedule the dialogue to a future date.
AND FINALLY…
Rover stripes – Eco-friendly football club Forest Green Rovers have added climate stripes to their kit for the 2024-25 season, drawing further attention to climate change, design magazine Dezeen reported. The uniforms, made by Umbro using a bamboo blend fabric, include a strip of the now-infamous global warming stripes behind under the neckline. The stripes, created in 20216 by climate scientist Ed Hawkins, use colours ranging from light blue to dark red to chronologically depict the long-term change in global temperature. The Forest Green Rovers, based in Gloucestershire, are owned by eco-entrepreneur Dale Vince and claim to be the world’s greenest football team, with a vegan diet across the club and offered at all of its matches. The team is also about to move to the world’s all-timber stadium. The club’s current stadium boasts solar-powered floodlights and an organic grass pitch watered with recycled rainwater, Dezeen said.
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